Bank of America plans market-linked step-up autocallables on stocks

By Toni Weeks

San Luis Obispo, Calif., Feb. 12 – Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due February 2018 linked to the common stock of Schlumberger Ltd. and Exxon Mobil Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus 20% if each stock closes at or above its initial level on either of two annual call dates.

If the worst-performing stock finishes above the step-up value – 125% to 131% of the initial level – the payout at maturity will be par of $10 plus the return of that stock.

If the worst-performing stock finishes at or above its initial level but at or below the step-up value, the payout at maturity will be par of $10 plus the step-up payment of 25% to 31%.

Investors will be exposed to any decline of the worst-performing stock.

BofA Merrill Lynch is the agent.

The notes will price and settle in February.

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